1. Field
The present invention is related to systems and methods for conducting transactions using networked computers. More particularly, the invention relates to a system and method for performing an online auction.
2. Description of the Related Art
Traditional auctions usually require the physical gathering of the products and the bidders at a predetermined location. An auction is scheduled to occur at a specific location at a scheduled time. Typically, interested bidders show up at the location prior to the scheduled auction time to inspect the items to be auctioned off. The bidders then attend the auction, wait for the interested products to be auctioned, and bid on these interested products.
At these traditional auctions, the products are disadvantageously made available to the interested bidders for a limited duration prior to the scheduled auction. During this limited time, the interested bidder has the task of inspecting the products which are of interest and to “book out” the product one at a time. Typical auctions may involve hundreds of products, and determining a value for each product in such a short period of time is inherently inefficient. Moreover, requiring the products to be transported to the auction location adds increased inefficiencies in the distribution channel between the seller and the buyer.
Traditional auctions have the further disadvantage that products are generally auctioned off one at a time. The auctioneer typically places a product up for auction and solicits bids from the auction floor. Once the highest bid is accepted, the product is closed to further bidding, and the next product is brought forward. This process of auctioning off one product at a time in a sequential manner is limiting because the interested bidder may have to wait through the entire auction in order to place a bid on the interested products. Moreover, because of the high number of products and the limited auction time, a product is presented for auction for only a very short period of time. Thus, a potential bidder is not afforded the luxury of time in deciding whether to place a bid.
At some auctions, more than one auctioneer is active at a time, and thus, more than one product is capable of being auctioned off at a time. This is more efficient in that more products may be auctioned off in a lesser period of time. But, simultaneous auctions require the interested bidder to concurrently monitor more than one auction to ensure that an interested product is not missed. This is inefficient because more than one bidder representing the same buyer has to be present at the auction. Further inefficiencies are introduced because the products cannot be auctioned off simultaneously to the same group of bidders.
More recently, the World Wide Web (“www”) has experienced an increasing number of auction sites. Typically, a seller places a product up for auction through one of these sites. The seller provides information such as, by way of example, a product description, including a photograph of the product in some instances, the duration of the auction, and possibly a required minimum selling price. This information is presented through one or more web pages. A bid history is also presented through one or more web pages so that interested bidders may place a valid bid on a desired product.
These auction systems enable the simultaneous auctioning of products as well as increasing the duration of time a product is presented for auction. But, conventional auction systems are inefficient because the participating bidders have to continuously monitor their auctions in order to keep abreast of the bidding activity. Furthermore, these systems have the added disadvantage in that the interested bidders have to continuously search for active auctions involving products of interest.
Having placed a product up for auction, the seller generally loses the flexibility of altering certain auction parameters during the auction period. For example, the seller may not be permitted to alter information such as the bidding increments, the minimum starting bid, or the minimum acceptable selling bid. This is generally inefficient because the seller has to wait through an unsuccessful auction before adjusting the auction parameters such that a successful auction may result.